Lockheed Martin (NYSE: LMT) Canada has signed a formal contract with the New Zealand government for ship installation and trials to complete the upgrade and modernisation of the ANZAC class frigates. The first of two frigates, Her Majesty's New Zealand Ship (HMNZS) TE KAHA arrived in Victoria yesterday.

Lockheed Martin Canada is responsible for designing and supplying the upgraded combat system for each ANZAC Class Frigate, including a new combat management system – based on Lockheed Martin Canada's Combat Management System 330 – along with the supply and integration of various sensors, a missile system and a Combat Systems Trainer. Lockheed Martin Canada has entered into a subcontractual agreement with Seaspan Victoria Shipyards Co. Ltd in Victoria, BC, to install the new systems on the ship platforms.

"We are very happy to continue our relationship with the Royal New Zealand Navy," said Acting Vice President and General Manager of Lockheed Martin Canada RMS, Gary Fudge. "The New Zealand ANZAC Frigate Systems Upgrade marked our official entrance onto the international market as a combat systems integrator in 2014. Our continued partnership with the Navy is something we are very proud of," added Fudge.

"Our partnership with Canadian shipyards on the Halifax Class Modernization program and the confidence that Canada placed in those shipyards on the National Shipbuilding Strategy program led directly to our ability to contract the ANZAC refit work to Seaspan," stated Fudge.

Today, Lockheed Martin Canada is the Combat Systems Integrator (CSI) for four major active programs across three countries, including New Zealand's frigate upgrade project, the Chilean Navy's Type 23 modernization, Canada's Arctic Offshore Patrol Ship, and the lead program which saw the initial development of the CMS 330, the Halifax Class Modernization program.

"The modernization and upgrades of ANZAC class frigates are critically important to the Royal New Zealand Navy," said Vice President of International Naval Systems Programs Kevin Arthurs. "These upgrades will provide the ships with a greater degree of survivability through a faster decision-making process and a more appropriate response to a variety of threats," added Arthurs.

Her Majesty's New Zealand Ship (HMNZS) TE KAHA arrived in Canada yesterday and HMNZS TE MANA is scheduled to arrive in 2019. Under Lockheed Martin Canada supervision and direction, Seaspan Shipyards will refit and install the new systems with an expected completion date of 2020 for the entire contract. The second frigate, HMNZS TE MANA, is scheduled to arrive in 2019.